Your Way Home AZ ProgramFor Buyers of Foreclosed Homes

Presented by:

Liz Fontanini& the Fontanini Team

Made Possible by: Wallick & Volk Mortgage and Pioneer Title Agency

Course OutlineInstructor Introduction: Liz FontaniniProgram Overview: Step by StepAgent-Buyer GuidelinesIssues for Real Estate AgentsHome Search, Purchase Offer & Purchase

AgreementQuestion and Answer Session

Instructor IntroductionLiz Fontanini and the Fontanini Team

Eligible Lender

The Your Way Home AZ Program is highly beneficial for potential homebuyers, as well as the state of Arizona.

Program Overview: Step by StepObjective:

Understand the Your Way Home AZ Program process and identify your role as a Real Estate Agent.

Program Overview: Step by StepThe Arizona Department of Housing (ADOH)

has designated $20,000,000.00 for the Your Way Home AZ Program.

The ADOH will provide 22% purchase assistance to qualified homebuyers purchasing eligible foreclosed homes.

Program Overview: Step by StepYour Way Home AZ Assistance Chart

First Mortgage 75%Purchase Assistance 22%Down Payment 3%Applicant Funds 1%

Program Overview: Step by StepStep 1: Determine Eligibility Step 2: Lender Pre-ApprovalStep 3: Homebuyer Counseling Step 4: Home Search, Purchase Offer &

Purchase AgreementStep 5: Submittal of Commitment RequestStep 6: Reports and ApprovalsStep 7: Pre-ClosingStep 8: ClosingStep 9: Post-Closing

Program Overview: Step by StepThe ADOH identifies the role of the Real

Estate Agent as follows: Assist homebuyers in finding foreclosed properties,

negotiate with sellers and draft purchase agreements.

Issues for Real Estate AgentsObjective:

Discuss applicant eligibility, eligible properties, Minimum Property Standards, appraisal requirements, program loan terms and amounts.

It is important that Real Estate Agents representing the Applicant understand the requirements and benefits of the Your Way Home AZ program.

Issues for Real Estate AgentsApplicant EligibilityEligible PropertiesRequirement that property meet Minimum

Property StandardsAppraisal RequirementsProgram loan terms & amounts

Issues for Real Estate AgentsApplicant Eligibility Requirements:

The Your Way Home AZ Program is available to Arizonans who are able to qualify for a mortgage and whose household income does not exceed 120% of the median income, adjusted for family size.

Household Size

CoconinoCounty

1 2 3 4 5 6 78 or more

$51,150 or less

$58,450or less

$65,750or less

$73,100or less

$78,950or less

$84,750or less

$90,600or less

$96,450or less

Issues for Real Estate AgentsApplicant Eligibility Continued…

Household income refers to all persons 18 years or older who will be living in the property.

Determine eligibility at www.yourwayhomeaz.com

Please refer to Your Way Home AZ website pages.

Issues for Real Estate AgentsEligible Properties:

Foreclosed one-unit detached Single Family Residences, Condo’s and Townhouses.

Property must be vacant at time of listing. Primary Residences only – second homes do not

qualify for this program.

A property is considered “foreclosed upon” at the point that the mortgage or tax foreclosure is complete.

Issues for Real Estate AgentsRequirement that property meet Minimum

Property Standards: Each Property must meet Minimum Property

Standards (MPS) to be eligible for the Your Way Home AZ Program.

For a complete list, please refer to attachment 8.

Issues for Real Estate AgentsAppraisal Requirements:

Every assisted property must be purchased at a minimum discount of 1% below the current market appraised value of the home.

Maximum purchase price for Coconino County is $450,000.

Lender and Real Estate Agents should make sure that appraisers for properties being acquired by Applicants are aware of the purchase discount.

Issues for Real Estate AgentsProgram Loan Terms & Amounts:

No payment will be required during the terms of the loan, as long as the loan remains outstanding and the borrower resides in the property.

The term of the program loan will depend on the amount of assistance. Under $15,000 in assistance is 5 years $15,000 to $40,000 in assistance is 10 years Over $40,000 in assistance is 15 years

Home Search, Purchase Offer & Purchase Agreement

Homebuyer Counseling: Each Applicant is required to participate in an

eight-hour Homebuyer Education Class. Applicant will need to complete the class before the

Applicant searches for an eligible home.

Northern Arizona Council of Governments (NACOG): Contact: Kim Haislet (928) 213-5219 khaislet@nacog.org

Home Search, Purchase Offer & Purchase AgreementHome Search:

The Applicant will conduct a search for a home to buy in the same way as any other homebuyer.

Realtor’s need be aware that Applicant’s are seeking a foreclosed home which meets the requirements of the Your Way Home AZ Program.

Home Search, Purchase Offer & Purchase AgreementPurchase Offer:

When the Applicant has located a property, he or she should make an offer to purchase incorporating Program requirements and contingencies, including: That the purchase price not exceed 99% of the

property’s appraiser market value That the property meet Minimum Property

Standards That purchase be contingent on receiving a Program

loan.

Home Search, Purchase Offer & Purchase AgreementPurchase Agreement:

As soon as the purchase agreement is ratified, the Applicant or realtor should provide a copy of the agreement and the Seller’s Certificate to the Lender and the Homebuyer Counseling Agency.

This is when the assistance funds are reserved for the Applicant.

Question and Answer SessionFrequently Asked Questions:

1. When do I order the home inspection? Who pays for it?

2. How can I determine if a referred Applicant is interested in the Your Way Home AZ Program?

3. What is the projected closing time period?4. Can seller pay closing costs?5. Who is the ideal Applicant for this program?

Question and Answer Session

FAQ Answers:1. When do I order the home inspection? Who

pays for it?

We recommend ordering the MPS inspection before an appraisal is ordered. This will help determine if additional value needs to be given after repairs.

The ADOH pays for the MPS inspection.

Question and Answer SessionFAQ Answers:

2. How can I determine is a referred Applicant is interested in the Your Way Home AZ Program?

To help communicate that an Applicant is interested in the Your Way Home AZ Program, the lender will provide a loan status report (LSR) showing the 1st mortgage along with the 2nd mortgage with no interest rate.

Question and Answer SessionFAQ Answers:

3. What is the projected closing time period?

The minimum close of escrow is 45 days.

4. Can seller pay closing costs?

Yes, the seller can pay the closing costs.

Question and Answer SessionFAQ Answers:

5. Who is the ideal Applicant for this program?

The Ideal application for the Your Way Home AZ program is an individual who has very little debt and savings reserves. Applicants for this program cannot exceed a 31/43 debt to income ratio and must have two months reserves to qualify.

Question and Answer Session

If your questions were not answered in this presentation, please feel free to ask them at this time.

If you have questions regarding this program at a later date, please feel free to contact us.

Lender Contact InformationLiz Fontanini & the Fontanini Team

(928) 556-0600 or (928) 600-9360

FontaniniTeam@wvmb.com

2409 N. 4th St. Ste. 102 Flagstaff AZ, 86001

Title Contact InformationSue Miller

(928) 779-4266 or fax (928) 779-6120

Sue.miller@pioneertitleagency.com

1016 W. University Ave. Ste. 101 Flagstaff, AZ 86001